7 things to ask when upgrading your ERP solution
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Industrial Manufacturing 7 things to ask when upgrading your ERP solution The capabilities gap between older versions of ERP designs and current designs can create a problem that many organizations are slow to fix. If you already have an ERP system in place, but you’re running an older version of it, chances are your ERP is not helping your business to continue to grow and evolve as quickly as you would like. Changing vendors can be as expensive an endeavor as adding an ERP to your organization for the first time. But, if your ERP vendor has continued to make investments in their ERP solution, upgrading your current system— rather than replacing it—presents a very smart option.
Can your current ERP What do you need to know?
release keep up? If you follow this roadmap, you’ll know what to consider
when upgrading your ERP system. These guidelines
If you already have an ERP system in place, and
and simple suggestions can help to frame your
you’re running on an older version of it, there’s a
conversation about upgrading to the most recent
good chance it’s no longer able to keep up with your
release of your system with your software provider
organization’s growing needs. The capabilities gap
and/or upgrade partner.
between older versions of ERP designs and current
demands already poses a problem that many Here are 7 important factors to consider when
companies simply can’t ignore. considering an upgrade to your ERP system.
As IDC puts it, “Selecting and implementing a new
ERP system can be a daunting process that places a
burden on the organization’s resources, and as a
1. Does the most recent version of
result can be a very difficult decision to make. your ERP system still “speak” the
Thankfully, upgrading your ERP presents a good language of your industry?
alternative to replacing a solution completely.”1
Your ERP system needs to fit your business—not the
When upgrading your ERP solution, the most recent other way around. Your ERP system needs to support
version of the application should foster a deci- your way of manufacturing. With these considerations
sion-making environment and be flexible enough to in mind, it’s crucial that your vendor and upgrade
match your business processes—not force you to partner have proven and extensive experience
change your processes to match the way the system working within your specific industry and segment.
operates. And, it should be able to adequately serve In addition to having strong technology skills, your
your entire enterprise—and scale as your company solution provider and upgrade partner need to
continues to grow and evolve. thoroughly understand your business. They should
know how best to configure the most recent release
of your system to support your processes and increase
your level of automation. In addition, your vendor and
upgrade partner should possess a depth of knowledge
that will allow them to ask the right questions and
recommend best practices.
Industrial Manufacturing Industry Perspectives 22. Will you get the benefits and 4. Will your vendor and/or
user functionality you need right upgrade partner get you up
out of the box? and running quickly?
An ERP upgrade can require that the solution deliver The upgrade of an IT solution requires very strong
benefits almost immediately. A new release that is project management and a clear methodology that
pre-configured for your specific industry can give you outlines project phases, milestones, and the roles of
pre-built content that you can use to rapidly create a individuals during the project. In essence, your vendor
solid business solution, while also delivering a variety and upgrade partner should be focused on reducing—
of outputs, including training modules and operational or outright eliminating—the internal challenges and
dashboards. With that in mind, when thinking about complexity of upgrading your ERP system, so you can
upgrading your ERP, you need to focus on business put the core functions of your new release to use right
drivers. Factors to consider before an upgrade away, without customizing or reconfiguring the system.
include: functionality, ease of use, business fit, Also, when considering an upgrade, make sure to
industry fit, integration with your existing systems, take into account the educational and change
and deployment options. management aspects of the project. Ensure that
your vendor or upgrade partner can deliver offerings
around these areas so that when the new release
3. Is your vendor committed is in production; your people are educated and well
to product development? prepared to take advantage of everything that the
system has to offer you.
When you are considering an upgrade, your current
vendor should have an innovative product roadmap,
a comprehensive technology portfolio, and a deploy-
ment strategy that will give your business plenty of
room to grow. Historically, upgrade projects have
been expensive and time consuming, however, the
technology tools available by selected vendors today
makes that scenario an issue of the past. Before you Confirm that your vendor has the
commit to an upgrade project, you should confirm
that your vendor has the technical skill, development
path, and vision that can keep up with the evolution
technical skill,
of your industry—and your business model. You must
be able to deal with today, as well as prepare for
tomorrow. Your business models have to be able to
development
evolve as thoroughly and quickly as the products you
bring to market.
path, and vision
that can keep up with the evolution of your industry
and business model.
Industrial Manufacturing Industry Perspectives 35. Do you need to consider 7. Will you continue to get the
“going mobile” or adding openness and scalability you need
business intelligence? to grow your business?
Does the current release of your ERP system support The challenge to reduce lead times and become more
your business model, your requirements, and your agile is driving companies to integrate with the internal
processes? Can it meet the new ways your company systems of suppliers and customers alike. But exchang-
needs to work? ing data can be an almost impossible challenge if your
technology platform is not set up for it—or it is outdat-
Typically, organizations that are running older
ed. You may have revenues of $50 million or less
versions of their ERP systems cannot take advantage
today, but in just a few years’ time yours could be a
of newer, more modern ways of conducting business.
$500 million to $1 billion company with manufacturing
For example, imagine one of your account managers
plants and offices running in multiple locations all
being able to access your ERP system with a mobile
around the world. This is why you need to be sure that
device so that he or she can conduct business while
the most recent release of your ERP system can scale
at the customers’ location. Or perhaps the most
to keep up with your expanding manufacturing
recent release of your solution has embedded
operations.
business intelligence (BI) tools so that you can take
advantage of real time analytics. Very often, being
able to take advantage of functionality that is lacking
in your current release—but is embedded in the
newest one—presents very strong, very compelling
reasons for considering an upgrade project.
6. Do you need to consider an
upgrade to the cloud?
Cloud deployment offers an appealing value
proposition for many manufacturers. IDC estimates
that the cloud packaged software model will account
for $1 of every $6 spent on software by 2016.2 An
upgrade of your ERP system delivered in the cloud or
through a software-as-a-service (SaaS) model can
reduce your hardware costs, while ensuring that your
ERP system always has the latest functionality. With
the cloud, you license your software from your
vendor for a flat, per user rate. The vendor provides
data center management, the hardware, upgrades,
and the support. This means that you can free up
your technical staff to handle more strategic tasks.
Industrial Manufacturing Industry Perspectives 4What to do now that you’re Understand the upgrade tools. Encourage your
vendor or upgrade partner to discuss the tools and
ready to upgrade technology solutions they will bring to the project so
that they deliver a streamlined approach to the up-
As the 7 factors outlined in this paper describe, the
grade process. This way your ERP can deliver benefits
next upgrade of your ERP system is going to be in
in weeks—not months or years.
use for a long time. So once you’ve decided that it’s
time to upgrade, your next steps are to: Ensure adequate training and change
management. Training and communication are critical
Quantify the value of upgrading. Many
components of a successful upgrade. In order to
organizations choose to upgrade in order to
assess and mitigate risks, your education and organiza-
modernize their ERP solution and stay competitive.
tional change management activities should be built
The value of upgrading can be determined through
into your upgrade project plan. This will help your
an ROI analysis and a detailed business case that
organization prepare for potential issues such as
quantifies the specific benefits your organization
change resistance among end-users who do not
hopes to achieve through an upgrade.
understand how to use a new release.
Work directly with your software vendor or a
strategic partner of the vendor. When upgrading
your ERP system, you’ll want to either work directly
with your software vendor or with a strategic partner
who is tightly integrated into your software vendor’s
ecosystem. Both organizations must offer financial
soundness, organizational stability, proven project
management and deployment methodology, and a
track record of always going out of their way to
provide exceptional customer service.
Industrial Manufacturing Industry Perspectives 5Why upgrading your ERP matters
Companies that upgrade typically receive a solution that requires less customization and overhead, is easier to
use, and can support more modern, flexible ways of doing business. And, with the technology and tools available
today to provide a seamless upgrade experience, moving to the most recent release of your ERP solution, either
on-premise or in the cloud, is a business proposition that will deliver value across your entire organization.
Learn more about Infor
Industrial Manufacturing
1 IDC Analyst Insight, “The Value of Upgrading ERP: Maintaining Modern Technology” February 2014.
2 IDC Press Release, “IDC Examines the Impact of the 3rd Platform on Software Business Models and the Building Customer Revolution,” May 21, 2013.
Share this :
Copyright ©2015 Infor. All rights reserved. The word and design marks set forth herein are
trademarks and/or registered trademarks of Infor and/or related affiliates and subsidiaries.
All other trademarks listed herein are the property of their respective owners. www.infor.com.
641 Avenue of the Americas, New York, NY 10011
Industrial Manufacturing Industry Perspectives 6
INFDTP1458672-en-US-0115-1You can also read
